short-selling mal im Silberminenbereich
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[url]http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=135115&sn=Detail&pid=32[/url]
RCMP meets with Silvercorp Metals about share-shocking letter
Friday , 09 Sep 2011
The Royal Canadian Mounted Police (RCMP) has joined the hunt for more
information about the identity of a hard-hitting but anonymous short seller who
according to Silvercorp made false claims in a letter.
The RCMP said Thursday that it met with Silvercorp Metals (TSX: SVM), looking
into the silver miner's complaint that last week an anonymous letter writer, who
held a short position in the company's stock, falsely called into question its
earnings.
Silvercorp said Friday last week that the masked short seller alleged - on
the basis of bogus documents - the silver miner had lost $500,000 in 2010,
whereas Silvercorp publicly reported a $66 million profit.
(..)
Little is known about the identity of the Silvercorp short-seller whose
claims Rui Feng, Silvercorp's president and CEO, called baseless.
(..)
Russell said that a special committee Silvercorp struck in the aftermath of
the bombastic announcement was exploring options as to how to identify and then
take to task the letter writer. If, as claimed, the anonymous letter writer held
a short position in Silvercorp, that person could have profited handsomely as
Silvercorp shares plummeted 10 percent Friday.
(..)
To refute the claims of the anonymous letter writer, Silvercorp took
extraordinary measures, releasing digital images of its
banking statements.
"People tell us its a classic case of short and distort," Russell said. But
this was worse, she added, "We call it a case of short and fabrication."
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[url]http://www.silverstrategies.com/story.aspx?local=h&id=80571[/url]
Is This Silver Miner Cooking the Books?
On Friday September 9, 2011, 10:11 am EDT
Last week, Silvercorp Metals Inc. announced some startling news. The Chinese
and Canadian miner was being accused of a $1.3 billion accounting fraud by an
anonymous letter. The letter, which was spread by email, claims Silvercorp
reported a profit in 2010 to the SEC in the United States, but reported a loss
to regulators in China. Silvercorp shares on the Toronto Stock Exchange
plummeted 16% on the news. The author of the letter also wrote that he had
taken a large short position in the company. Silvercorp has since denied the
allegations and even provided tax and other financial documents related to its
Chinese silver mining operations to prove the allegations false. The company
did acknowledge that short positions in its stock increased to 23 million shares
over the past two months.
(..)
Although the Canadian federal police have contacted the company to offer help
in finding the anonymous author, the company appears to be defending itself
quite well. In addition to posting documentation the shows the miner reporting
profits in its Chinese subsidiaries, the company also offers proof to its cash
position. In response to the allegation that the company’s cash balances are
overstated, Silvercorp posted 67 pages of bank statements and documents
detailing its short-term investments and cash positions to the tune of $221.3
million. The company also has no long-term debt. In the end, shareholders will
have to decide for themselves if Silvercorp belongs in their portfolio. Last
week, shares hit a low of $7.04, but closed at $9.07 on yesterday, representing
a 29% increase.
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[url]http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=134782&sn=Detail&pid=32[/url]
Posted: Monday , 05 Sep 2011
Silvercorp Metals (SVM.TO)
on Friday became the latest China-focused resource company listed in North
America to get caught up in fraud allegations reminiscent of those that have
upended Sino-Forest (TRE.TO).
(..)
Silvercorp said the central allegation in the letter was that it had reported
a net profit in 2010 to North American regulators, while reporting a net loss to
Chinese regulator.
The letter also states that the company's statements about the grade its ore
deposits were simply "too good to be true" compared with those of comparable
companies.
Silvercorp, which flatly denied both allegations, said it had noticed a sharp
increase in short positions taken out on its shares over the last two months.
Short-sellers such as Carson Block, whose research report led to a 75 percent
drop in Sino-Forest, profit by borrowing shares they believe will drop, selling
them and then repaying them later at a lower price - pocketing the difference.
(..)
SLAMS ALLEGATIONS
Silvercorp said the letter, dated Aug. 29, was addressed to the Ontario
Securities Commission, the company's auditors and various media outlets. The
company said the letter alleged an accounting fraud at the company.
The unknown author also stated that his firm held a short position in the
company's shares and it intended to publicize its concerns through Internet
postings, Silvercorp said in its release.
Silvercorp said it had not confirmed whether the letter had been sent to all
the addressees or posted online. Given the threat, the company said it had
chosen to proactively respond to the allegations.
Silvercorp has appointed a panel of independent directors to work with
regulators to discover the identity of the party behind the allegations.
(Reporting by Julie Gordon and Euan Rocha; editing by Frank McGurty)
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